Holi Bonanza: Center Hikes 6% DA


New Delhi: The Union Cabinet on Wednesday approved a proposal to increase dearness allowance by 6%, for central government employees and pensioners.

The new DA would be 119% from 113% earlier, and would benefit more than 1 crore central government employees. It would be effective from July 1.

The increase in dearness allowance, or a pay correction to employees to adjust the rising cost of living expenses, would help the broader economy too.

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The increase comes during the festive season, and the additional money could spur consumer spending, at a time when the economy is slowing down, with lower sales of cellphones to cars. This could in turn boost the government’s tax collections as well.